Now in its sixth year, KPMG’s annual in-depth analysis of the Australian aged care sector highlights the trends and insights for the market, using publicly available information.

This year, our analysis focuses on the top 25 providers by market share, across home care and residential aged care.[1]  We also look further into the sector’s high levels of merger and acquisition activity – mostly by providers who are aiming to improve their economies of scale and influence. And we put a spotlight on the sector’s new entrants. 

Key findings

The number of providers in the aged care market has decreased since 2021 and is split across:

  • 846 home care providers (down 2.4 percent) 
  • 698 residential aged care providers (down 4.3 percent).

We can attribute this decline to consolidations within the market.

Home care in Australia

There has been significant growth in the number of people accessing Home Care Packages (a 19 percent increase over 12 months), mainly due to an increase in the quantity of packages released by the Australian Government.

Forty-one percent of total government funding went to the top 25 Home Care Package providers in FY22 (a decrease of eight percent since 2016), which reflects the increase in the number of providers over the past six years. This trend of provider growth has stabilised in the past four years, but competition remains high.

Residential aged care

Forty-four percent of total government funding was paid to the top 25 residential aged care providers. This was an increase from 41 percent in the prior year, partly explained by key acquisitions.

In terms of the overall number of operational places and residences per provider, the Australian residential aged care market is continuing to grow. This comes despite the drop in occupancy levels and lower demand for residential aged care.

Aged care industry insights

  • Financial pressure is still an issue across the sector. Sixty-four percent of residential aged care providers are currently operating at a loss.[2]
  • Smaller providers continue to exit the market due to increasing regulatory requirements and an inability to remain financially sustainable.
  • It is expected that significant market consolidation will occur, given the ongoing pressures on financial sustainability, particularly for providers in regional, rural and remote locations.
  • The aged care workforce remains a critical issue. Providers are struggling to attract and retain qualified, skilled and experienced staff. Exacerbating this issue are the new requirements for mandated care minutes and registered nurses onsite 24/7 at residential aged care homes.
  • To reach optimal operational and business performance, it will be critical for providers to have systems that can analyse data, support efficient operations and reporting plus innovative models for the delivery of support operations.
  1. Analysis period is from 1 July 2021 to 30 June 2022.
  2. According to data released from the first Quarterly Financial Report (September 2022 quarter)
Download PDF

Aged Care Market Analysis 2023

Our latest report provides an in-depth analysis of the Australian aged care market, including the top 25 home care and residential care providers.

Download PDF (1.6MB)

How KPMG can help

KPMG has a deep understanding of the aged care sector. Our team of professionals can integrate innovative, evidence-based approaches with sector expertise across the aged care operating and regulatory environment.

Get in touch to understand how we can help you.

Key contacts